The Minerals Council South Africa has expressed disappointment that there was no mention in the 2026 Budget, presented to Parliament by Finance Minister Enoch Godongwana on February 25, of reduced electricity tariffs for the ferroalloys industry, which is facing closure and job losses because of the more than 900% increase in electricity prices for industrial users since 2008.

Minerals Council CEO Mzila Mthenjane says the council would, in future budgets, like to see assistance to sectors that are under distress, such as ferrochrome and diamonds, to enable these sectors to increase production and to sustain and grow jobs.

He adds that, with the current outlook for mining volumes to continue contracting, the council would also like future budgets to make mention of incentives for mining exploration.

"We expect commodity prices to remain at elevated levels for gold and platinum group metals (PGMs); however, the sustainable impact for South Africa demands increased production across all minerals and infrastructure capacity," the council notes in a statement.

It points out that, while mining was not overtly mentioned in the 2026 Budget, the upswing in prices for gold and PGMs underpinned the fiscus and contributed to the R21.3-billion increase in gross tax revenue.

The council agrees with the National Treasury that the near-term benefit of the upswing in gold and PGM prices is positive for the fiscal outlook, but cautions that the improvement is based on a small group of minerals and purely because of increased prices rather than higher production.

It points out that the prices of gold and PGMs are expected to remain at elevated levels, but stresses that increased production across all minerals is needed.

“The absence of any direct mention of mining’s performance and its contribution to the fiscus, despite its significant impact on tax and the budget surplus was a missed opportunity. Mining should be a sector of national economic priority.

"Given the government’s continued social expenditure to avert social distress and to deliver essential basic services and infrastructure, [and the mining sector’s] ability to deliver, ensure its future growth and to leverage its employment multipliers, the sector has an important role in South Africa’s future social and economic security,” says Mthenjane.

The Minerals Council has, meanwhile, also welcomed the increased allocation of R21.9-billion to five major projects, which includes restoring capacity on the iron-ore and coal railway lines to 77-million tonnes and 60-million tonnes, respectively.